$A higher at noon ahead of data release

The Australian dollar was higher at noon, despite trading in a tight range ahead of some key economic data releases.

At 12.00pm AEDT on Wednesday, the local currency was at 105.79 US cents, up from 105.48 US cents at Tuesday's close.

During the morning, the Australian dollar moved between a high of 105.80 US cents and a low of 105.57 US cents.

The currency opened the Australian trading day at 0700 AEDT at 105.61 US cents after moving in line with gains on Wall Street during the overnight offshore session.

The unit gained further in morning trade, as the S&P/ASX200 began on a positive note.

However, moves were limited ahead of domestic jobs data for December due out on Thursday, as well as the December consumer price index report next week.

"The jobs data is going to be important but what the market is really looking for is that inflation number," LTG Goldrock director Andrew Barnett said.

Mr Barnett said a weaker-than-expected inflation report would increase the prospect of an interest rate cut from the Reserve Bank of Australia (RBA) in February and put downwards pressure on the currency.

The Australian Bureau of Statistics will publish the December labour force report at 1130 AEDT on Thursday.

The December quarter inflation data was scheduled for publication January 23.

Mr Barnett said the ongoing negotiations over the US debt ceiling in the US Congress was also keeping the Australian dollar stuck at these levels.

In the overnight session, Fitch Ratings said it might downgrade the US triple-A credit rating if there was no agreement on increasing the amount the US government was able to borrow.

"The only way the Aussie dollar is going to continue to go higher is if we have good company earnings and we see good economic data," Mr Barnett said.

Meanwhile, the Australian bond market was firmer at noon.

At 12.00pm AEDT, the March 10-year bond futures contract was trading at 96.615 (implying a yield of 3.385 per cent), up from Tuesday's local close of 96.575 (3.425 per cent).

The March three-year bond futures contract was at 97.200 (2.800 per cent), up from 97.190 (2.810 per cent), previously.